In recent days, with the issuance of the three-quarter performance report on crown farmers'shares, their movement along the tomato chain has re-emerged investor concerns. On the “e-interactive” platform of investor interaction at the exchange, investors asked about the integration and extension of the company's industrial chain in response to new acquisitions. Previously, market analysts have pointed out that the acquisition of the main business, tsing tsing san, which fills the ketchup and softly packed ketchup cans, has in fact demonstrated the ambition of the competitor to create an “agricultural whole-industry chain carrier”。
Quarterly: 47 per cent increase in receipts over the same period of the previous year
According to the three quarterlys, the company earned close to 800 million yuan in the three quarters, an increase of 47 per cent over the same period the previous year, with a net profit of 156 million yuan. Of these, fruit and vegetable processing (mainly tomato products) has grown rapidly, and according to its 2014 semi-annual report, the collection of ketchup has increased by almost 466 per cent compared to the previous year, with māori at 25. 86 per cent, much higher than the first processing of cotton。
In fact, for the tomato industry as a whole, the price of ketchup has reached an all-time high with last year's “restricted price” policy and the gradual end of global stocking of ketchup. Industry analysts pointed out that small businesses had been phased out of the market because of the dire situation and that the tomato sauce industry was expected to continue to grow better in the future. The company had previously indicated that, with the warming of prices and the availability of sufficient raw materials, it planned to produce 35,000-40,000 tons of ketchup, an increase of 40-60 per cent from 25,000 tons last year。
At the same time, the competitor's share increased the extension of the tomato industry chain, with the acquisition of shares in tianjin iii and 51. 1 per cent at $210 million in august of this year and its inclusion in the consolidation of the financial statements in august. It is known that tianjin iii and the main operation are cans of ketchup, soft-packed ketchup, etc., with more than 20 years of experience in processing exported food products for export in 48 countries, including the middle east, africa, europe and america, russia and japan. China is the world's largest exporter of tomato products, while the new china-china, china-china food-tang, tianjin and others account for the bulk of the export share, of which tianjin-san and tianjin-san have cumulatively exported about 70,000 tons in 2014, representing 22 per cent of the country's total exports。
According to an interactive response by kim jianxia, secretary of the crown farmer's department, net profits of $388. 36 million (unaudited) were realized in january and september 2014, of which $1. 814 million were realized in august-september. According to the previous bulletin, tianjin san and the shareholders had promised that net profits for tianjin iii and the next three years from 2014 would not be less than $50 million after deduction of non-recurrent gains or losses and that they would increase by 10 per cent each year and inject all ketchup assets and brands into tianjin iii; if during the three-year profit commitment period, tianjin and the other shareholders had not reached the promised net profits, cash compensation would be paid for the part of the difference that had not reached the promised net profits。
However, the crown farmer's idea of tianjin san is much more than a simple performance on the statement. According to the secretariat, after the acquisition of tianjin san and the company achieved the integration and extension of the upstream and downstream industrial chain, “there is now good cooperation between the two parties in line with the expected results of the project”。
Small packaging ketchup: the market is just beginning, the space is huge
For the time being, my country remains a “manufacturing country” and a “small consuming country” for tomato products. Owing to the low demand for domestic consumption, which is influenced by domestic dietary habits, the data show that the ratio of consumption of fresh tomatoes to processed tomatoes is 95 per cent to 5 per cent, compared with the world average of 76 per cent to 24 per cent. According to tomatoland statistics, per capita consumption of tomato products in 2013 was 0. 6 kg/year, and domestic consumption demand was only 84,000 tonnes. However, as dietary habits change and consumption structures escalate, between 2007 and 2011 our consumption of tomatoes increased at an annual rate of 15 per cent, much faster than the 3 per cent increase in world consumption, and overall market demand will continue to increase in the coming years。
Small packaging ketchup is more imaginative in tomato products. For reasons of eating habits, chinese people have concentrated on the consumption of fresh tomatoes, leading to the slow development of china's small-packaged ketchup industry, until 2005 when less than 90,000 tons of small-packed ketchup were produced, of which 70 per cent were exported. According to data from the chinese chamber of food and livestock imports and exports, the total volume of our small packaging ketchup exports in january and september 2014 was 31. 47 million tons. The domestic small packaging market has also been expanding over the years, coupled with technological advances such as the introduction of high viscosity cold shredding technologies and the expansion of the capacity of small packaging ketchup. Because of our large population base, the “population dividend” of the tomato consumption market is expected to be released further as the overall consumption structure escalates, dietary habits diversify and internationalize。
Despite the enormous space available, the current situation in the domestic market for small packaging tomato sauce is generally less than encouraging, on the one hand, because exports exceed domestic sales and competition is intense, and, on the other hand, because of the lack of own brands, which are dominated by oem production and profit margins for foreign brand companies. Unlike the competitiveness of large-packaged ketchup, which is based primarily on price, which is directed directly to the final consumer market, the competitiveness comes mainly from branding and marketing channels, which are more complex in terms of production processes, quality control, and branding, market maintenance and marketing management, requiring significant investment of financial and human resources。
For the competitor, the acquisition of tianjin san san and, in fact, the creation of a whole chain of tomato processing, the advantage of the competitor in tomato raw materials combined with tianjin and the excellent international market capacity, and the alignment of xinjiang's high-quality tomato sauce products with the international market, would allow companies to achieve synergy and control of small-packed ketchup from the source to the end of the market, significantly improving their overall competitiveness, while effectively avoiding the market risk of a huge fall in the tomato industry。
At the branding level, it is known that the tomato product currently branded as a “candros” has been advertised in xinjiang and that the tomato sauce owned by the farmers will gradually appear in public view. On the other hand, in addition to the integration of tienjin san and tien jin sales channels, companies continue to operate in the electrical channels, such as the august collaboration with the “huggers” under the xiong express, trying to create a green supply chain for xinjiang-specific agricultural products in the o2o model。
Previously, the chairman of the crown farmer's board of directors had publicly stated that the crown farmer was undergoing a major strategic transformation aimed at creating a whole-industry agricultural chain of carriers. Indeed, since its entry into 2014, under the double-wheel drive of main industries+investment, its transformation has been evident, with downstream firms being acquired, e-commerce companies being formed, and companies working together in a manner that reflects the firm's keenness to transform and management to innovate。
Responsible editor: zhang dei
